The De Beers diamond mining and marketing company of South Africa became one of the most profitable and longest-lived monopolies in history. Which of the following has always threatened De Beers' control of the diamond market?
A) At different times in the past some countries have banned the importation of diamonds from South Africa for political reasons.
B) Competition from imitation diamonds. Technology has made it possible to make fake diamonds look exactly like real diamonds.
C) Competition from other gemstones, including rubies and emeralds, that have become more popular over time.
D) Since few diamonds are ever destroyed, De Beers has constantly faced possible competition from other firms reselling diamonds.
D
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Suppose one knows two facts: first, the market for prescription drugs experiences chronic shortages and second, the government sets the price for prescription drugs. One can conclude that the government has:
A. encouraged buyers to hoard prescription drugs. B. set the price too high. C. set the price above the equilibrium price. D. set the price below the equilibrium price.
Stricter laws and regulations to protect intellectual property rights
A) will tend to have little impact on an economy since intellectual property is not tangible. B) will create a stronger and more successful black market for intellectual property. C) will help to create a more successful market system. D) will only benefit those companies whose intellectual property rights have in the past been ignored.
When World War II (1941–45) came, the U.S. civilian labor force could be expanded only by about 30 percent
Indicate whether the statement is true or false
An example of a quantity restriction is
A) the minimum wage. B) an import quota. C) rent controls. D) price supports in agriculture.